The global market for Haitian vetiver oil is highly fragmented with many small-scale regional players, finds a new report by Transparency Market Research (TMR). This, as a result, creates an opportunity for multinational players, such as International Flavors and Fragrance, Lluch Essence, UniKode S.A., Frager S.A., and Robertet Groupe, to establish their presence in this market and improve their distribution and value chain for the target product.

On the backdrop of continuous increase in the demand for Haitian vetiver oil from the fragrance, food and beverages, pharmaceuticals, and the personal care products industries, the existing key distributors of vetiver oil across the world are likely to include this Haitian variant in their product portfolio and stimulate growth of the global market over the next few years. New players are expected to be attracted towards this market due to the high profit margins in the near future, states the research report.

According to the research study, the global Haitian vetiver oil market is expected to witness a surge in the production volume at a CAGR of 1.50% during the period from 2016 to 2024. However in terms of revenue, it is expected to decline at a CAGR of -1.10% over the same period of time from a value of US$32.4 mn in 2016 to US$29.7 mn by 2024. The demand for Haitian vetiver oil has been higher in the perfumes and scents and the trend is expected to continue throughout the period of the forecast, notes the market study.

On the basis of the product, the research report segments the global market for Haitian vetiver oil into conventional and organic vetiver oil. The usage of conventional vetiver oil is much higher than the organic one. With the increasing preference of organic products among consumers across the world, this this segment is anticipated to witness a slight decline in its market share in the near future. This, however, will not alter its market position over the years to come.

In terms of the geography, Asia Pacific, Europe, Latin America, the Middle East and Africa, and North America have been considered as the main segments of the worldwide market for Haitian vetiver oil in this market report. Europe led the global market in 2016 with a share of nearly 75%. Analysts anticipate this regional market to maintain its lead over the period of the forecast, states the research report.

“The reputation of Haiti as the producer of the best quality vetiver oil in the world has been the key factor behind the increasing demand for Haitian vetiver oil,” states the author of this study. Since vetiver oil is an essential raw materials used in fragrances, the rising trend of aromatherapy is fueling its demand significantly.

In the coming years, the demand for vetiver oil as flavoring agent is expected to see an improvement due to its growing usage in food and beverage products to impart flavor, aroma, and certain functional properties. Apart from this, the rising usage of therapeutic and aromatic oils is also projected to boost the production of Haitian vetiver oil over the next few years. However, the easy availability of alternatives may limit its demand in the near future, impacting the growth of this market.